>> i like to call the may 22 meeting of the public utilities commission to order. [roll call] >> a couple housekeeping items. we will take that off calendar so there will be no closed

session. we will see how that came out. the other item for housekeeping, and he did disclose there were as a longstanding relationship that those people -- it does not affect the ability to act impartially on that item. the approval of minutes for the may 8 meeting, commissioners, you have questions or comments? >> i have a slight amendment. i am catching up there.

just a minute. i am still getting my ipad bearings. come back to me in a minute. >> are there any public comments on the minutes? are there any public comment on anything that is not on the agenda today? commissioners, we have the communications events calendar and a letter summary. are there any comments on that material? item six, is there any other commission business? >> i have something. it is really a question, are we going to have a plaque on the

new building? >> excellent question, i will find out for you. living on. >> there is a community choice program. >> the afternoon, commissioners. this is a very brief item to keep the wall in the loop. and extend the service agreement we have, what we would extend it to go beyond the four and a half years of the contract that we expect to have.

>> any questions? >> good afternoon, assistant general manager, the first one is the budget status report that gives you an update-the variance in the budget. i will point out in particular, one page. the key variances are summarized on this page. that is exactly what you heard during the second quarter report. they are not as far under- budgeted as previously. they had a slight uptick in

sales. they are about 2% below budget. the enterprise is projected to end the year with adequate reserves. the waste water department is the same thing. and because of the relatively dry snowfall year, we have average precipitation of the mid 60's right now. with that, we have had less water to generate electricity. in particular, the key is between the second quarter of the third quarter is that there are about $11 million less. that is the order of magnitude which you are used to. the previous year, you have positive surprises.

and so you have adequate reserves for that and it is still ending the year in the hech hechi fund. that is the case for all three of your enterprises. the other key news today would be the bond sale. the key take away their is that we have very aggressive bidding. i have the handout at your desk. with $702 million sold, we have an average bother -- borrowing rate of 7.2%. it is considerably less than what we had planned in the financial plan. it means we have been able to achieve and lock in place about

$130 million that would average $1 a year over the next 31 years. the next page gives you a summary of all the bids. wells fargo was a very aggressive bidder. we had some smaller refunding to settlement reimbursement. very good news, something that would be very good. >> is about 25% 4.5% and you have the liquidity to back it. >> do we have that ability, or are we sticking with bonds? >> we do have that ability and we have maximized if for $500

million on the commercial paper. they have authorized us for $300 million for waste water. we want to make sure that the weighted average between the long bond in the short-term commercial paper is the best deal for the ratepayer. >> with the conversations i have had in the treasurer's office at the department of finance, most of the issues we have had to grapple with, can there be increased savings utilizing commercial papers? unique in that regard, 87% by bonds and california are individuals, not institutions. hwill have exhausted the wonderful opportunity and you took advantage of it.

>> we will next be in the market this summer with another refunding. looking at both competitive and negotiated sells for the ratepayer. i would also like to thank our debt manager who as he is here and did a lot of the heavy lifting. >> good for you for saying that. >> that concludes my report. >> any public comment on the general manager's report? let's go back to the approval of the minutes. >> i have a slight amendment to number seven, if the language could read, commending the efforts in implementing the

community benefit policy. >> where are you? >> #7 is the minutes under general manager. a slight amendment. >> without objection, that change will be made. bawsca update. >> nicoel stle from bawsca. i wanted to keep my comments short in light of a full discussion about water supply later. there is one item that i wanted to talk about. we are pursuing the possibility of prepaying old capital that. the regional water system using

the water supply agreement. in fact, at the rate analysis is the same air as the $50 million that would be repaid in this manner. we have hired a bond counsel to assist us with this study. that is making its way right now through the state legislature. we will work to keep her updated. we appreciate the support. if there are questions i can answer for you on this or another topic, i would be pleased to do so. >> can you explain why mr. jensen could not be here today? >> his daughter got married over the weekend, it was a very large affair. he has taken a well-deserved couple days off.

>> any questions? madam secretary, william cole the consent calendar? >> -- will you call the consent calendar? >> item 9, installation on howard, harrison, approved a modification #one for a total contract amount of $986,000. and authorize final payment to the contractor. except work performed by the end jay utility company for local water on harrison street from eighteenth street to cesar chavez. approve modification #to

decrease the contract by $37,707. with a total contract duration of 240 consecutive calendar days and authorize final payment to the contractor. approved modifications as needed annual paving contract for services and main breaks. extending the contract duration by 210 consecutive calendar days. authorize the general manager to execute a change order to increase the contract amount by $110,000 for a total contract value of $3,320,770. bayview hunters point rehabilitation and pavement renovation in the amount of $2,535,027 of which over $1.7

million is funded by waste water enterprise. to the lowest qualified responsible and responsive better, -- bidder, shaw pipeline. energy efficiency for san francisco peninsula for an amount not to exceed $3 million to the lowest qualified responsible bidder. an amount not to exceed $3 million for the lowest qualified and responsible bidder for emcor services inc.. do ratify the declaration of emergency made by the general manager and approved by the president of the commission for immediate drilling and blasting work to address a rock fall on the road the southp fork adit.

to approve the selection and award agreement to daryl owens, inc. and authorize the general manager to negotiate and execute an agreement for an amount not to exceed 1,000,255 -- $1,250,000. >> commissioners, anybody want to remove any items from the consent calendar? can i have a motion? >> moved. >> seconded. >> all those in favor? the motion carries. item ten, please. >> authorized the general manager to execute on behalf of the city and county of san

francisco a funding agreement with santa clara county into the nature conservancy. toward the county acquisition of the ranch. the creation of a conservation ageneasement on such land. and protection of conservation values through annual monitoring. >> good afternoon, commissioners. this is our third proposed acquisition, our largest to date. if they are all a little different. i will be happy to answer any questions. >> can you describe where this is? >> it is not contiguous with our

property. towards the end, there are two matters. which as in contexts and it shows the map which we have provided. before that is a map provided by the parts that shows a little bit more detail and how it basically connects the county park land to the property. >> commissioners, any questions? >> i love these kinds of projects, so i think it is really great. not only to protect the watershed, but to protect these rare parcels. >> let me take a moment to thank our staff person for countless work for years, literally.

it's easy for me to present it briefly in 30 seconds, but a lot of work goes into this and it takes a lot of time. >> can you clarify one thing? some of the money will go towards storage of the land, too, right? >> we are providing some of the funding for the acquisition and monitoring the terms of the easement. we want to make sure that the investment delivers. and so we're providing that as part of the endowment to be able to. there will be accessed eventually as part of the park system. and the easement itself will be and the easement itself will be held by the servants the and we